
Buying a Boat – A Simple Guide for 2025
Thursday, January 23, 2025
Australia is spoiled for choice when it comes to pristine waterways, lakes, and beaches. With 87% of Australians living within 50km of the coast, it should come as no surprise that 1 in 10 Aussies have a boat licence, and that the nation has just north of a million boats and personal watercraft registered. Basically, we’re boat mad! And the chances are that if you’re reading this, you are too.
In this article, we’ll take a look at some of the key things you need to consider when buying a boat in Australia, including setting a budget, deciding on the type of boat that best fits your needs and preferences, securing finance, finding a reputable dealer, organising a pre-purchase boat inspection and ensuring a smooth transaction.
Whether you count yourself amongst the lucky few that already own a boat, or you’re hoping to become a registered owner in 2025, this boat buying guide is here to get you started. So, before summer passes you by, let’s set sail and see what’s involved in buying a boat in 2025!
The importance of setting a budget
For many Australians, a boat is one of the biggest purchases that they will make in their lifetime outside of their home. As such, setting a realistic budget for yourself and understanding the finance and payment options available to you is essential.
It’s important to remember that the cost of owning a boat doesn’t end the moment that you transfer ownership. In fact, in most cases – this is where the bulk of costs can begin. Ongoing costs such as maintenance, fuel, insurance, and monthly storage or mooring costs are all things that you need to consider before purchasing a new or used boat. If you plan on financing, you should make several versions of this budget and stress-test it in case your repayments or any additional costs increase.
A boat is a major financial decision and commitment, which is why it’s a good idea to consider your personal financial situation and consult with an impartial financial planner. Here are some of the most popular financing options that you should be considering when buying a boat in Australia:
Outright cash purchase: As the name would suggest, an outright cash purchase for a boat involves upfront capital (cash or cash + trade-in amount) to take outright ownership of the boat at time of purchase with no ongoing repayments or debt.
Personal loan: A personal loan means that the boat is taken against your name in the same way that you might finance a car or holiday. Personal loans are typically unsecured, which means that they are not tied to a single asset and the interest rate may be higher.
Secured boat loan: A secured boat loan means that the boat is secured against the value of the boat. Failure to keep up with payments can result in the boat being repossessed.
If you are planning to finance your boat, be sure to read our article on how to get the best boat loan rates in order to give yourself the best chance of securing a great deal.
How to decide on a type of boat
Whether you’re in the market for a new or used boat, choosing the right type of boat to suit your desired application can be tricky – particularly for first timers. To make things easier, here are some of the key considerations that you should be looking at and some insight into the five most popular types of boats purchased by Australians.
Purpose
Recognising how you will be using your new boat, whether it’s for leisure, fishing, or water sports, will help narrow down the type of boat that fits your needs.
Budget
Everyone has a different budget when buying a boat, and often it can be the deciding factor on the type of boat you end up purchasing.
Size
Boats are generally purchased with the intention of sharing an experience with others. It’s best to get an idea of how many people you will need to accommodate on the boat. This will help to determine the length and width of the boat.
Maintenance
It is inevitable that your boat will require maintenance. Some boats require more maintenance than others, so it’s best to identify how much time and money you are willing to put towards maintaining a boat.
Location
With Australia’s varying local climate and water conditions, getting a boat that is most suitable for where you live, and your lifestyle is important.
Now here are some of the most popular boat types purchased by Australians:
Different Types of Boats
Runabouts
Runabouts or boats that live on the back of a trailer (affectionately called ‘trailer boats’) and are – by far – the most popular boat type in Australia accounting for almost 70% of all vessels. Runabouts are also colloquially known as tinnies, due to the fact that large numbers – in fact, 62% of all boats in Australia are made from aluminium, according to the Boating Industry Association – of them are made from aluminium.
If you’re considering a tinny, be sure to read our tinny buying guide for some pointers.
Cruisers
Cruisers are designed for comfort during extended trips on the water, with inbuilt cabins, kitchens, and bathrooms. For this purpose, they are one the larger sized boats available.
Fishing boats
Fishing boats (as you can probably guess) are specifically made for fishing.
Pontoons
These boats are flat-bottomed boats with a large deck. They are generally used for leisure, entertainment cruises, and commercial charters.
Sailing boats
Sailing boats are particularly common in harbours where there are strong winds to help power the boats for cruising and racing purposes.
Finding a reputable boat dealer or seller
The best way to find a reputable boat dealer is by asking local boaters if they can recommend dealers or sellers who they have recently purchased from. Once you’ve got a name, use online information to source reviews and ratings on dealers, and don’t be afraid to ask around more widely for information on private sellers.
When it’s time to negotiate and make your purchase, be sure to have done as much prior research as possible. While negotiating the overall price of the boat might not always be possible, you can often work out deals on financing options, included accessories, or additional perks like warranties or maintenance services. This approach can add value to your purchase and ensure you’re getting the most for your money.
The ins and outs of the process will vary depending on where (and who) you’re buying your boat from. For more information that will aid you in negotiations, make sure to read our guide on how to buy a boat from a private seller, along with our ultimate boat show buying guide.
Ensuring a smooth transaction when buying your boat
After covering all the essential steps of setting a budget, choosing the type of boat, and finding a seller, you should carefully review the sales contract and any warranties or guarantees that are offered. If you’re buying a used boat, we highly recommend reading our used boat buying checklist, to make doubly sure you know what to look out for before you proceed with the sale.
Next, it’s crucial to secure all necessary documentation. This includes the boat’s registration papers, proof of ownership, and any transfer documents required to finalise the sale. Ensure that the seller provides a receipt or bill of sale that includes the boat’s identification details (such as its Hull Identification Number) and the seller’s contact information. If the boat comes with a trailer, make sure to collect its registration and documentation as well.
Before finalising the transaction, it’s a good idea to verify that there are no outstanding debts or encumbrances on the boat by checking the Personal Property Securities Register (PPSR). This small step can save you from potential financial headaches later, as buying a boat with outstanding finance could result in repossession.
Finally, take the time to confirm that you have all the necessary paperwork to register the boat in your name and arrange appropriate insurance coverage. Double-check everything before making the final payment, whether it’s a bank transfer, financing arrangement, or cash. By ensuring every detail is handled upfront, you can hit the water knowing your new purchase is legally secure and ready for the water.
FAQs when buying a boat in Australia
What are the registration requirements for boats in Australia?
Just like cars, boat registration in Australia is handled on a state-by-state basis. The below state organisations are responsible for handling boat registration in Australia.
Australian Capital Territory: Transport Canberra and City Services (TCCS)
New South Wales: Transport for NSW
Queensland: Queensland Boating and Fisheries Patrol
South Australia: Department of Planning, Transport, and Infrastructure
Tasmania: Department of Primary Industries, Parks, Water and Environment
Victoria: Victorian Maritime Centre
Western Australia: Department of Transport
Northern Territory: Department of Transport
Registering a boat can be a complex process, so be sure to do your due diligence before purchasing a new or used vessel.
What is the process for transferring ownership of a boat?
In Australia, you will need to complete the transfer of ownership form and submit to your state or territory’s transport agency. The form will require you and the buyer to sign the document. You will also be expected to provide proof of identification and proof of ownership. Depending on the state and territory you’re located in, you may need to pay a transfer fee.
Are there any tax implications when buying a boat in Australia?
Yes, there are a few tax implications you should be informed of before buying a boat in Australia. Depending on the value of the boat, you will be required to pay a Goods and Services Tax (GST) on the purchase price. If you are registered for GST and you intend to use the boat for business purposes, you may be able to claim a credit for the GST included in the purchase price.
In the case that you are not registered for GST or the boat, you will not be used for business purposes, you will not be able to claim a GST credit. Stamp duty costs and requirements will also vary from states and territories.
Start Your Journey to Boat Ownership with Credit One
Whether you’re thinking of buying a new or used boat, we can help. With a range of financing options available, including secured boat loans, private sale finance, and used boat finance, we make it easy to buy the boat of your dreams. Compare our boat loan options, use our boat loan calculator to find out just how affordable finance can be, and get ready to start your journey to boat ownership with Credit One!
And if you haven’t started your search yet, why not see what’s available in your state by exploring the range of boats for sale at Only Boats.